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Lilit Nurijanyan

Armenian Tourism: Are High Hotel Prices Justified?

On the eve of the summer tourist season in Armenia, two experts from the industry went before the press and expressed their views about the state of the tourism sector in the country. Bother stated that Armenia still has a long way to go to bring the overall sector, especially outside Armenia, up to acceptable standards. Hakob Hakobyan, Vice President of the Hotel Association, said the numbers of tourists to Armenia that in 2008 and to date in 2010 were basically the same, while in 2009, due to the economic crisis, the number had sharply dropped. Robert Minasyan, President of the Tour Operators Association, the hotel occupancy rate across Armenia stood at 15-20%, a fairly low figure. Mr. Hakobyan replied that in Yerevan this number remains between 50-70% throughout the year.

Mr. Minasyan stated that the number one priority of the tourism sector in Armenia is to create an organized and complete tour package for visitors, including the plane ticket, hotel reservations, tour schedule and other related services. He said that the services provided in Armenia do not justify the high costs charged. Mr. Minasyan provided the example of Turkey, where top quality service is provided as relatively affordable rates. Mr. Hakobyan countered that competitive prices in Turkey were based on the large numbers of tourists visiting the country, which is not the case in Armenia. Mr. Minasyan pointed out that in 2009, the year of the crisis, 29 million tourists visited Turkey, in contrast to the 9 million in 2008. He said that Turkey was able to draft a strategy to take advantage of the crisis and this resulted in a $21 billion windfall. Mr. Hakobyan said that he did not find hotel prices in downtown Yerevan to be high. "Today you can get a room for 60 Euros in Yerevan today. In what European capital can you find the same?" he asked. Surprised reporters asked if he really equated Yerevan with Paris, London or Rome. He replied that they were comparable both economically and in terms of tourism.

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